It doesn't matter how much you're earning, you must register for self-assessment within three months of starting your business. It is illegal not to.and you lay yourself open to being charged large penalties by HMRC if you don't. You may well know that you don't earn enough to pay tax or NI but that makes no difference - you must register so they know from your tax returns that you don't owe anything.
Having registered, HMRC will tell you everything you have to do. Basically they will tell you to fill in a tax return every year, and they bill you from that. What you need to do is keep good records of money coming in and money spent for business purposes. The tax return requires you to enter those two total figures, and your profit - the difference between them.
Even though you don't make enough to pay tax, as a self-employed person you must register for self assessment and complete a tax reurn each year. There are fines f you don't register.
You still need to register if you are self employed regardless of what you earn and you need to pay NI, it would be stupid not to, as far as tax, you do not pay tax until your earnings are over £11k
If you are trading outside the PAYE system you must register for Self Assessment. It is illegal to not register and there are savage penalties whether or not you earn much after expenses.
This is not optional - you MUST register. See gov.uk/Self Assessment.
Answers & Comments
It doesn't matter how much you're earning, you must register for self-assessment within three months of starting your business. It is illegal not to.and you lay yourself open to being charged large penalties by HMRC if you don't. You may well know that you don't earn enough to pay tax or NI but that makes no difference - you must register so they know from your tax returns that you don't owe anything.
Having registered, HMRC will tell you everything you have to do. Basically they will tell you to fill in a tax return every year, and they bill you from that. What you need to do is keep good records of money coming in and money spent for business purposes. The tax return requires you to enter those two total figures, and your profit - the difference between them.
Even though you don't make enough to pay tax, as a self-employed person you must register for self assessment and complete a tax reurn each year. There are fines f you don't register.
If you earn more than £11000 you have to pay 20p tax every £1. If you earn more than £5965 you have to pay £2.80 per week class 2 national insurance.
If it is less you won't pay anything, but you still have to register for self assessment.
You still need to register if you are self employed regardless of what you earn and you need to pay NI, it would be stupid not to, as far as tax, you do not pay tax until your earnings are over £11k
If you are trading outside the PAYE system you must register for Self Assessment. It is illegal to not register and there are savage penalties whether or not you earn much after expenses.
This is not optional - you MUST register. See gov.uk/Self Assessment.
You will not pay tax until you earn 11K a year minus expenses.
You have to register with HMRC for self Assesment. It will tell you on their site how much NI to pay.
UK